Shareholders of Arik Air (W3, Lagos) have accused the state-owned Asset Management Corporation of Nigeria (AMCON) and its managing director, Ahmed Kuru, of mismanagement, misinformation, and breaches of protocols in their receivership of the airline.

In a September 20 statement later published by Sahara Reporters, the shareholders accused Kuru of making false and misleading statements to justify AMCON's takeover of Arik Air in 2017 and called for transparency and justice in resolving the matter. They expressed their willingness for an open dialogue with the government agency and relevant investigative authorities to address a lingering dispute, charging that under the agency's aegis, the airline suffered heavy job losses, a loss of capital and business capacity, "and unprecedented economic setbacks through some unjustifiable receiverships and mismanagement caused by AMCON's arbitrariness and deliberate misinformation to the government".

ch-aviation has contacted AMCON and Arik Air's receiver manager, Kamilu Omokide, for comment.

Nigerian newspaper Daily Trust reported that Kuru recently challenged Arik Air's shareholders to present a plan to repay an NGN240 billion naira (USD312.5 million) debt pile to repossess the airline. However, the shareholders disputed the debt: "The MD of AMCON should cross-check his facts, as his agency never filed a sum of NGN240 billion in its claim of the airline's indebtedness in any court. This is patently false, contradictory and misleading. It is an incontrovertible fact that Arik had no issues with aircraft lessors and finances, and neither was any aircraft impounded or seized anywhere in the world until mid-2019, well into the receivership by AMCON when the lessors were not paid as directed by the CBN [Central Bank of Nigeria] letter of March 14, 2019, to all banks."

The shareholders asserted that Arik Air had 17 operational aircraft and two parked for minor maintenance when AMCON took it over but now it operates only three. They claimed that assets were not properly inventoried during the takeover. "The Arik Air hangar in Lagos is now a static display of 14 abandoned new-generation aircraft, while the rest have either been cut to pieces, sold, or shipped out of the country," they claimed.

"The spare parts inventory of Arik Air valued at over USD150 million has been significantly depleted to less than USD15 million. About 80% of domestic routes have been shut down. All West Coast, African, and intercontinental routes to London, New York, etcetera have all been shut down completely after three months of operation by AMCON in 2017. In addition, over 3,000 of Arik's highly trained manpower have lost their jobs."

In addition, the shareholders accused the government agency of impropriety and breaches of legal and fiduciary duties in the establishment of NG Eagle (2N, Lagos). AMCON aimed to transfer to it the assets of Arik Air and offload the stricken carrier's debt pile.

They said NG Eagle was incorporated on July 11, 2019, with Arik Air receiver manager Omokide, an AMCON employee, as a shareholder/director. AMCON itself was listed as the second shareholder with other employees of the agency as directors. The shareholders claimed that the registration, establishment, and expenses of NG Eagle were funded from Arik Air's sales proceeds, suggesting an improper use of Arik's funds.

They also raised concerns about the February 20, 2023, sale of NG Eagle to Alhaji Abdul Ahmad, described as an acquaintance of Kuru and a bureau de change operator selling foreign exchange to Arik Air. They alleged the sale was made in secrecy just before a scheduled court judgment involving Arik shareholders, Omokide, AMCON, NG Eagle, and others.

They pointed out that the Federal High Court in Lagos in March 2023 ruled against the transfer of Arik Air's assets to NG Eagle and ordered Omokide and AMCON to deliver within 14 days Arik's financial returns for the entire receivership period to Nigeria's Corporate Affairs Commission.

The shareholders also refuted several claims made by Kuru and asserted the following:

  • that Arik Air was not in default of any financial obligations when AMCON took it over in February 2017 and that AMCON renegotiated loans with higher interest rates without involving Arik management;
  • they disagreed with Kuru's attribution of Arik Air's takeover to former Vice President Yemi Osinbajo, suggesting it was an unnecessary government intervention.